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Sunday, 23 May 2021

Hazem Badran, Tarek Tantawi set up new PE firm

Former CI Capital co-CEOs Hazem Badran (bio) and Tarek Tantawi (LinkedIn) appear to be setting up a new PE firm, dubbed Valor Capital Partners, Badran tells Hapi Journal in an interview out this morning. The new firm is still being founded and is in early stages, with the principles and final management structure remaining to be established, he added. The announcement comes a few days after the pair announced they are leaving CI Capital following the Taaleem IPO and CI Capital’s acquisition by Banque Misr.

Valor Capital initially aims to raise up to USD 100 mn, Badran says without revealing how many funds they plan to launch or when he expects to reach close on these funds. Saudi and Egyptians investors have already signed on, he noted. We reached out to Badran for more details but he was unable to comment as of dispatch time.

Valor will seek management control: The firm plans to follow the standard private equity model of acquiring majority or minority stakes in target companies with the “intention of having an active role in management,” according to Badran. This would include teaming up with other minority investors should the firm take a minority stake in a company. The firm also plans to establish new ventures.

What will Volar Capital invest in? Investments will initially be focused on the consumer goods, education, health and real estate sectors, with plans to dive into finance at a later stage, Badran said. Valor will be eyeing undervalued companies with promising growth prospects, he notes.

Volar Capital aims to carry out its first transaction in 3Q2021, Badran said. Two more investments are currently being reviewed, with a decision on one of them coming in the next few months, he added.

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